Dog-themed cryptocurrency Shiba Inu (SHIB) has seen an 880% increase in its burn rate, with 320 million SHIB tokens burned in the past seven days.

According to Shibburn, 320,186,507 SHIB tokens were burned in the last seven days, representing an 880.1% surge in burn rate. Meanwhile, in the last 24 hours, 1,290,359 SHIB were burned, which on the contrary represented an 84.68% drop in the daily burn rate.

HOURLY SHIB UPDATE$SHIB Price: $0.00001872 (1hr -0.21% ▼ | 24hr -3.11% ▼ )Market Cap: $11,032,919,956 (-3.03% ▼)Total Supply: 589,268,791,367,936TOKENS BURNTPast 24Hrs: 1,290,359 (-84.68% ▼)Past 7 Days: 320,186,507 (880.1% ▲)

— Shibburn (@shibburn) October 20, 2024

Token burning is the process of permanently removing cryptocurrency tokens from circulation by transferring them to a dead wallet, hence lowering the overall supply.

While 320 million SHIB represents a tiny fraction of the massive total supply, the increased burn rate could signal that the Shiba Inu community remains committed to the long-term goal of reducing the token's supply and increasing its utility.

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At the time of writing, Shiba Inu was experiencing profit-taking, down 2.24% in the last 24 hours to $0.00001873. Shiba Inu achieved highs of $0.00001956 in yesterday's trading session, following a price gain throughout the previous week.

Shibarium transactions skyrocket 1,054%

The Shiba Inu ecosystem is witnessing a massive surge in activity with daily transactions on the Shibarium Layer 2 blockchain increasing by 1,054% in recent days.

According to Shibariumscan data, Shibarium saw a massive transaction spike, reaching 324,590, a 1,054% increase from the prior day's transaction count of 28,110. After flatlining around 7,000 in transactions in the past month, Shibarium started seeing a sudden surge in transactions Oct. 18.

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This surge in transaction activity bodes well for SHIB's long-term growth prospects. Increased usage can also contribute to SHIB’s deflationary tokenomics through the burning mechanism tied to Shibarium, which reduces SHIB's total supply with every transaction.

ShibTorch, Shiba Inu's community-driven burn portal, launched on the Shibarium Layer-2 network in August, with every Shibarium transaction contributing fuel to the burn project.

Layer 2 transaction base fees are locked into a dedicated Shibarium burn contract, while network validators are rewarded with priority fees. As BONE, ShibaSwap's governance token and the Shibarium gas fee token, accumulates under the burn contract, any user can step up and start the burn process.